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Dalata Hotel Group has exchanged contracts to acquire the long leasehold interest of a hotel under development, located at Aldgate, London for a total consideration of £91m.
As part of the transaction Dalata will acquire the entire issued share capital of Hintergard Limited from Aldgate Hotel Holdco, an investment vehicle of an international private equity real estate investor.
Hintergard owns the 300-year leasehold interest of a hotel under development, located at Aldgate, London. The deal is conditional on the completion of the hotel to an agreed specification. The construction of the hotel, which will be branded Clayton Hotel Aldgate London, is expected to be completed and operational towards the end of this year.
The property will be located adjacent to Aldgate East Underground Station and in close proximity to the new Liverpool Street and Whitechapel Crossrail stations, both of which are scheduled to open in December 2018.
Dalata said the transaction will be funded by an additional debt facility which has been secured from the company’s existing banking partners.
Dermot Crowley, deputy CEO of business development and finance, said: “We are delighted to secure this new hotel in Aldgate, London. We already successfully operate two Clayton hotels in the Greater London area at Chiswick and Cricklewood.
“This new hotel gives us a presence in a key central location within the city and is ideally located for corporate customers who want to be close to the City of London and leisure guests visiting the many attractions that the city has to offer. Access to the Aldgate area will be further enhanced with the opening of two new Crossrail stations at Liverpool Street and Whitechapel in December 2018.”
He added: “Although RevPARs have fallen slightly in London over the last 12 months, London remains a key gateway city in Europe that will continue to benefit from the growth in international travel. Our gearing levels will increase in the short term as a result of this transaction but will still remain below our guided upper level of 3.5 times Net Debt to EBITDA.
“The hotel is projected to be earnings per share enhancing from its first year of operation and
the announcement today represents another very important milestone in the growth of Dalata in the UK.”
Dalata currently has a pipeline of almost 2,000 rooms across UK cities such as London, Birmingham, Glasgow, Manchester and Bristol.
